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Electric car maker Tesla will cut the prices of its cars for the Chinese market for the second time in just three months, the company said on Friday.

The move is seen by experts as further evidence that a price war is looming in the battery-powered car sector in their biggest market in the world.

The reason is the continuing downward trend in demand.

Tesla has already reduced the prices of its best-selling models for the markets of Japan, South Korea and Australia.

The coordinated reduction is an attempt to support production at the Shanghai factory, already the company's largest production hub.

This is also the first serious management decision of the new CEO of Tesla for China - Tom Zhu.

At the same time, the company's share price continues to fall, and on Friday it collapsed by another almost 6%.

Tesla is scaling back Model Y production at its Shanghai factory in December

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